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edward long

Association of Old Crows


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The Dow is steadily improving while the national quality of life is consistently worsening.

Barack Hussein Obama's first term is over. The numbers are: 1) National Debt up 54.7%. 2) Unemployment up 0.7%. 3) Poverty up 6%. 4) Approval rating down 18%. 5) Dow Jones Industrial Average up 72%!! Explain this disconnect between America's vital signs.


Closing Statement from edward long

25 contributors offered these points to ponder
~ we need new goals
~distribution of wealth is broken
~it's a bubble and it's going to burst soon
~statistics are inherently deceptive
~we are printing too much unbacked money
~the government is spending too much
~It's Barack Hussein Obama's fault
~5 folks said there is no more connection between Wall Street and Main Street
~we are loading debt onto future generations
~small investor confidence is at all time low
~younger folks American dream includes tech toys but no home ownership
~money can't but happiness
~the top secret TPP is to blame
~Big Pharma is parasitic
~the Military is a budget buster
~ It's NAFTA's fault
~we are living in the New World Order
~Deflation Depression
~Exessive China trade for shoddy merchandise
~Free Trade is good
~US corporate tax is world's highest
~the Landlord Bubble
~youth becoming deluded narcissists
~middle class being strangled by inflation
~the Media is way off target
~poor getting poorer is new phenomenon
~US is too big to fail
~need term limits for Representatives
~need to repeal the 17th Amendment
~need to revise the 16th Amendment
~need to reduce Cabinet positions to seven
~need to go Isolationist
~stop paying Dictators for permission to feed their starving masses
~we have a Placebo Democracy
~all profit comes from someone's pocket
~leaders are corrupt
~Government creates no wealth
~copyright laws benefit the elite only
~people are the whole problem
~Quantitave Easing
~all should read "The Creature From Jeckyl Island"
~only Economists can understand
~we elect politicians rather than people
~Debt and the Dow are proportional
~debt can be invested
~unemployment and wages are inversely proportional
~poverty causes wage reduction
~low wages stimulate profit and productivity
What was not mentioned, surprisingly to me, was if the DJIA got Barack Hussein Obama re-elected
Have a look at the 9 links in the post
Conclusion?. . . Wall Street and Main Street are independent!!

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  • Jan 25 2013: The DOW has been inflated like a ballon with massive amounts of money (i.e. debt). $1.5+ tillion from the FED in the way of treasury bonds, $5+ trillion of US debt from the Federal in US treasury bonds, $1+ trillion in Dept of Education backed Student loans, plus the entire housing "recovery" financed by the government entites like (FNMA, Freddie Mac, FHA, etc.) The ballon will soon pop.

    Check out Elliot Wave International at http://elliottwave.com/ for insights into how social mood drives markets and a discussion of the Deflation Depression we have been in since 2001.
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      Jan 25 2013: The jargon of Economics makes little sense to me. For example-- we have been experiencing Deflation since 2001 which would make me think the balloon is stretching less and less and the danger of bursting is diminishing. Another example-- Debt = Money ?? I don't get it but thanks for the exposure!
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        Jan 26 2013: I don't think it is designed to make sense to one not taught it. I have no formal eduction but I gather misuse of a valuable tool by those able to do so is to blame for such non-economy and that governmental growth and coporate growth are proportionate with certain market bubbles a bursting bubble is like, OOP all the stockholders of an entire sector chose to sell which puts those who catch it "right" more the richer and at advantage to ride a new bubble. Deflation at this point would make the populace more dependent and less able to perform. I cant find the sense in it other than a systemic complacency and negligence of the elected. How does a loaf of bread cost 2000% more to buy but the work to create that same loaf has decreased by maybe not 2000% but is considerately less than a century ago. How do luxeries become entitlements in a sensable nation without surplus and promise for future generations taken in consideration first? An indebted future is the antithesis of economy. Nice question. I wonder what the Dow with conditions you cite truely indicates about us as a People. Thanks
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          Jan 26 2013: QUOTE: "I place economy among the first and most important virtues, and public debt as the greatest of dangers. . . We must make our choice between economy and liberty, or profusion and servitude. If we can prevent the government from wasting the labors of the people under the pretense of caring for them, they will be happy."-- Thomas Jefferson. I am not trained in Economics but that makes perfect sense to me. I believe our founding leaders had it right. Too bad we pay no attention to them, or to the Constitution, today. Thank you for you observations!
      • Jan 26 2013: Debt equals money in the sense that money is not backed by gold or any precious substance. Money is now created and backed by your mortgage your car and any other thing you finance. In other words it is backed by your promise to pay back the amount you financed. I know this is an over simplified example but it's the quick answer. If you would like to understand it better a very good start would be a book called "The creature from Jeckle island" Warning it may boggle the mind.
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          Jan 26 2013: Economics 101: If I buy a hamburger from you and instead of paying on the spot I promise to pay later you will probably charge me a fee for such a transaction. If I pay on the spot you will not charge me the fee. That fee represents an increase in your net worth and is real "cash" flow. . . unless I default, in which case you are out the burger and the cost to make it, market it, distribute it, and deliver it at the point-of-sale. I got a burger and you got the shaft. Is that where we are? I realize as word spreads no one will trust me unless I pay on-the-spot. How does anyone amass wealth in that scenario?

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